Stocks Dip on China Dispute and Start of Earnings Season

by devteam April 13th, 2010 | Share

After three days of gains, US equities are looking to start lower on Tuesday ahead of trade balance data for February.

The caution is partly attributed to poor results late yesterday from Alcoa, who tipped off the Q1 earnings seasons by posting a loss of $201 million. The nation’s largest aluminum producer saw revenue advance by 18% in the quarter, but analyst expectations were even rosier. 

Also in the headlines is commentary that President Obama’s meeting with Chinese counterpart Hu Jintao didn’t go so well. Reuters reported that “Sino-U.S. tensions over the yuan threatened to escalate into a serious trade dispute,” and that “China would not be pushed by external pressure and would instead base any decision on the yuan on its own economic needs.”

90 minutes before the opening bell, Dow futures are down 21 points to 10,931 and S&P 500 futures are down 2.75 points to 1,189.75. The 2 year Treasury note is unchanged at 99-30 yielding 1.032% while the 10 year note is +0-02 at 98-10 yielding 3.832%.

Commodity prices are also lower. NYMEX crude oil has fallen for five consecutive days and this morning is trading 67 cents lower to $83.67 per barrel. Meantime, Gold is slumping by $7.90 to $1,154.30.

Key Events Today:

8:30 â€

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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